Jcc Supervisors Defer Projects

Efforts Taken To Avoid Deficit, Increase Options

November 20, 1990|By LUCINDA COUTO Staff Writer

JAMES CITY (COUNTY) — County supervisors, in what seemed a painless effort to avoid a potential deficit and to broaden their spending options, agreed on Monday to defer nearly $2.6 million in capital projects.

The $2.6 million was appropriated for fiscal year 1991, which started July 1, but was not expected to be spent before May 1991.

John E. McDonald, manager of Financial Management Services, had recommended the board defer $1.5 million in capital projects.

To that list, the supervisors added $290,000 for landfill property acquisition; $40,000 to pave roads; $245,000 for industrial property acquisition; $188,800 for recreation facilities; $200,000 for a high school site and $135,000 from money set aside for a new elementary school. The cuts added by the board total $1,098,800, but nearly all the items are left with some funds.

McDonald recommended placing into the contingency fund the money allocated for these capital projects: $150,000 for landfill property acquisition; $50,000 for paving roads; $45,000 for secondary road projects; $55,000 from industrial property acquisition; $250,000 for a new library; $50,000 for a new courthouse; $200,000 for recreation; $200,000 for the new high school site, and $500,000 from a new elementary school site appropriation.

"Some people need to understand why we're going through this," said Supervisors Chairman Perry M. DePue who described it as moving the county's money "out of a checking account and into a savings account, basically."

McDonald said the county faces a $400,000 to $500,000 revenue shortfall this year if trends are an indication of what can be expected.

He said revenue collections for July to October of this year compared to last year have been "soft." He said increases have been minimal, and some decreases have occurred.

For example, the county collected $1,391,478 in sales taxes for FY90, compared to $1,403,818 for FY91. Room taxes totaled $233,444 for FY90, compared to $235,283 for FY91, and building permit fees totaled $120,712 for FY90, compared to $100,241 for FY91.

"Growth is not occurring as we had thought it would," he said.

He said FY92 looks worse, and the county may take in $3 million less than he projects it will need.

He said during that year, operating expenses and debt service for new schools will increase and the county will lose about $800,000 in school aid.

Supervisors have several options for dealing with a potential deficit, McDonald said.

They could order a freeze on the operating budget, reduce the capital improvement budget, reduce the debt service reserve, consider user fees - such as at the landfill - increase the tax rate, or carry forward funds from this fiscal year to the next.

The board, at this stage, chose to review $8.3 million in planned capital improvement projects. None of the $2.6 million deferred was slated for expenditure until at least May, they said.

The board spent about two hours grappling with everything from deferring construction of new sidewalks and computerizing the manual mapping system to determining how much to leave in the secondary roads fund.

Supervisor Thomas K. Norment Jr. said he wasn't so sure the county should commit to $450,000 under a plan to have each local dollar matched by the state.

"It's caused me some concern," he said, explaining that he believes the state may stop matching funds because of budgetary constraints.

In another matter, the board announced it will pay $847,500 for 63.4 acres at the intersection of Chickahominy and Richmond Roads in Toano for a new middle school site after members spent about 10 minutes discussing the matter in closed session.